Insurance Firm
AU-2.1.1
Except for
captive insurers , the legal status of aninsurance firm must be:(i) A Bahraini joint stock company (BSC);(ii) A branch resident in Bahrain of a company incorporated under the laws of its territory of incorporation and (where local regulation so requires) authorised as an insurance or reinsurance firm in that territory; or(iii) A Bahraini exempt company (E.C.) which was incorporated and licensed to conduct insurance business prior to 1st January 2005.Amended: July 2007AU-2.1.2
For
captive insurers , the legal status of aninsurance firm must be:(i) A Bahraini special purpose vehicle (SPV), specifically established to carry out the activities of acaptive insurer ; orAmended: July 2007AU-2.1.3
A Bahraini SPV is a category of a closed Bahraini joint stock company (BSC(c)). The minimum capital required by the Ministry of Commerce and Industry to incorporate such a company is much lower than for other types of companies, at BD 1,000. In addition, however,
captive insurers must satisfy the CBB's capital requirements for captives, as set out in Module CA (Capital Adequacy).Amended: July 2007
Amended: January 2008AU-2.1.4
Where the
insurance licensee is a branch of an overseas insurance company, in deciding whether to grant a license, the CBB will pay close regard to its activities elsewhere and how these activities are regulated. If theinsurance licensee is not regulated elsewhere (e.g. some countries do not regulate reinsurance firms) or in a jurisdiction not substantially compliant with IAIS Core Principles or FATF standards, then an application for licensing can only be considered after exhaustive enquiries into the firm'sshareholders , management structure and financial position.Amended: July 2007AU-2.1.5
[Guidance Paragraph deleted in January 2007.]
Amended: July 2007AU-2.1.6
[Guidance Paragraph deleted in October 2005.]
